House prices in Whitechapel around the planned new Elizabeth Line station have risen by nearly 100% since 2008 according to a new report.
Due to a series of delays, the opening of Crossrail has been pushed back to 2021 yet property prices have continued to soar, according to estate agents Benham and Reeves. Research shows properties are set to increase by a further 4.7%.
When plans for Crossrail were approved over 10 years ago amid the financial crisis, the average price for Whitechapel houses was around £330,770. This has now risen by 89.9 per cent to £708, 490. The average property price around Crossrail stations in the South East is now £655,103, which is an increase of 2.1 percent over the last year. This is compared to an average 1.9 per cent elsewhere in London.
Research by London property developers have repeatedly seen Whitechapel predicted to outperform other boroughs in property prices over the next few years. In the past year Whitechapel has seen the third largest rate of growth with prices up by 27.3 per cent, compared to a drop of 2.3 per cent across Tower Hamlets as a whole.
Capital Estates in Whitechapel told ELL: “Theres been a lot more interest in the area due to Crossrail. A lot of our clients have started buying in order to rent properties out. We’ve also seen a lot more first-time buyers investing in Whitechapel.”
As well as this, Whitechapel’s proximity to London’s financial center has meant an increase in luxury flats being built around the station, which are set to be snapped up by well-paid City workers.
Benham and Reeves told ELL: “Theres been an increase in demand for Whitechapel, it’s become a more popular and trendy area. Crossrail has brought a lot of interest to the area, especially amongst professionals from the city.”
The cost of the new station in Whitechapel, which is on the Whitechapel Road, is now £659 million, the most expensive of all the stations on the Crossrail line. The cost is due to the difficulties in constructing the station over the existing District and London Overground lines station. The connection between the three lines will give rail users greater opportunties and reduce the journey time to Heathrow by about 20 minutes.
The rise in prices is likely to aggravate the housing crisis in Tower Hamlets with over 18,000 currently on housing waiting lists. One fifth of households have an annual income of less than £15,000. R
And Whitechapel has historically been considered one of the most deprived areas in East London. The area circa 1888 gained a reputation as crime-ridden and overcrowded with abject poverty and slums. It was rife ground for criminality such as the Ripper murders and the Kray twins.
Tower Hamlets has committed to delivering 2,000 new council homes by 2022 and say Crossrail links will aid housing developments. In a statement the council said: “Tower Hamlets has considerable capacity to grow…the transport infrastructure is soon to benefit from Crossrail opening. Crossrail will provide a step change in improved public transport capacity to the borough and act as a major catalyst for further regeneration.”